Iran deal lifts Sensex by 388 points as oil prices tumble

Mumbai: Snapping a three-day losing run, the benchmark Sensex on Monday surged 387.69 points on the back of lower crude oil prices after a historic deal between world powers and Iran on its controversial nuclear programme.

The Sensex, which had shed 673.43 points in the previous three sessions, shot up by 387.69 poins, or 1.92 percent to end 20,605.08 -- near the day's highs. 27 of the 30 index constituents closed up. ICICI Bank, ITC, HDFC, HDFC Bank and L&T contributed over 237 points of the index's surge.

Brokers said after the recent fall in markets, the Iran-deal news was lapped up by bullish investors and markets moved up on strong volumes. Fears of US stimulus tapering were also shrugged off, they added.

Indian stocks emerged as the star performer in Asian and European markets as falling oil prices eased inflation concerns. Reacting to the historic deal, Brent crude fell by more than 2 percent in early Asian trade to USD 108.5 levels.

On similar lines, the broad-based National Stock Exchange index Nifty spurted by 119.90 points, or two percent, to 6,115.35.

"Positive global cues and strong opening of European indices also boosted market sentiments. The rupee too firmed up against dollar and was seen trading near 62.5 level," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

Sectorally, the BSE Capital Goods index gained the most by rising 3.82 percent on the back of Crompton Greaves, BHEL and L&T. It was followed by BSE Bankex 3.63 percent and BSE Realty 2.28 percent. IT shares, however, had a forgettable day with Infosys down 0.7 percent.